************************************
Following is a question by the Hon Tam Heung-man and a written reply by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, in the Legislative Council today (July 5):
Question:
At the meeting of the Panel on Administration of Justice and Legal Services on March 27, 2006, the Government indicated that no studies would be carried out into the proposals on limitation of liability during the remainder of the Chief Executive (CE)'s term of office. However, according to a circular issued in June by the Hong Kong Institute of Certified Public Accountants, at a meeting with the President of the Institute, CE was positive to the proposed systems of limited liability partnerships and proportionate liability. In this connection, will the Government inform this Council:
(a) whether it has changed its position in March 2006 on the reform on professional liability system; if so, of its current position;
(b) whether it will refer the subject to the Central Policy Unit, Commission on Strategic Development or other relevant advisory bodies for deliberation; if so, of the details and timetable; if not, the reasons for that; and
(c) whether it will hold regular discussions with the accounting, legal and other professional service sectors on the subject; if so, of the schedule of such discussions; if not, the reasons for that?
Reply:
Madam President,
The Administration's responses are as follows:
(a) & (b) The Administration's position on the proposals for limiting liability put forward by some professional organisations, including the Hong Kong Institute of Certified Public Accountants, is set out in the paper presented by the Department of Justice to the Panel on Administration of Justice and Legal Services on March 27, 2006 (at Annex). In essence, having regard to all relevant considerations, including the statutory recognition of the concerned professional sectors as well as the interests of consumers and services users, the Administration takes the views that it will not at this time consider upsetting the balance of the present liability regime and that no further studies will be carried out into the proposals for limitation of liability during the remainder of the Chief Executive's term of office.
(c) Nonetheless, the Administration will, as always, continue to maintain dialogue with professional organisations over issues relevant to the development and regulation of the professions concerned. The Chief Executive's meeting on May 30, 2006 with representatives of different professional organisations was one such occasion. The Chief Executive has taken note of the views expressed, including those put forward by the representatives on the subject of limiting liability.
Ends/Wednesday, July 5, 2006
Issued at HKT 12:42
NNNN
